01 Mar 2019 China legal update: SAMR Invites Opinions on Licensing Rules for Special Equipment Manufacturers
I. Legal News
SAMR Solicits Comments on Measures for the Registration of Mortgages on Movable Property
The State Administration for Market Regulation (« SAMR ») has recently issued the Measures for the Registration of Mortgages on Movable Property (Revised Version) (the « Revised Version ») to seek public opinions by March 8, 2019.
According to PRC Property Law, the rights of mortgages on movable property will be formally created at the time when the mortgage contracts enter into force. The validity of the mortgage will not be affected no matter if it is registered or not; however, if not registered, the parties concerned shall not challenge any bona fide third party. This Revised Version is set to further clarify the registration formalities of mortgage on movable property.
The Revised Version states that when enterprises, privately-owned businesses, and agricultural producers and operators intend to create mortgages on moveable property, they shall register the mortgages with the county-level market regulators where the mortgagors are domiciled. As a reform, an online system called the National Market Regulation Business System for the Registration of Mortgages on Movable Property (the “System”)1 was also launched in the Revised Version, where the concerned mortgagor can apply for registration, alteration or cancellation of mortgages through such System. The System will also serve as an information disclosure platform on which public can browse and inquiry relevant mortgage information. However, the Revised Version adds that specific implementation rules for operating the System will be formulated later separately.
CPC Central Committee and State Council Unveil Provisions to Toughen Supervision Over Food Safety
The General Office of the Central Committee of the Communist Party of China (« CPC ») and the General Office of the State Council have recently issued the Provisions on the Food Safety Accountability System for Local Party and Government Leading Officials (the « Provisions ») which has taken effect from February 5, 2019.
It is stressed in the Provisions that food safety will be included into the performance assessment of local party and government leading officials (“Officials”), who shall be held liable if they were found the following acts:
1) Fail to perform their duties in the implementation of food safety work;
2) Be directly responsible for the major food safety incidents occurred in their region;
3) Fail to organize relevant departments to deal with food safety incidents effectively, causing adverse effects or large losses;
4) Conceal, falsely report or defer reporting the food safety incidents;
5) Illegally intervene in food safety incidents; and
6) Other circumstances where they should be held accountable.
The purpose of the Provisions is to push local governments to put food safety work into their development plans and promote Officials to strengthen their supervision on food safety.
II. Hot Topic
On February 18, 2019, CPC Central Committee and State Council Unveil Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area
The Central Committee of the Communist Party of China (« CPC ») and the State Council have recently released the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (the « Outline »).
The Outline is one great development structure for the areas covering Hongkong, Macao, and 9 cities in Guangdong Province, namely Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing (the “Bay Area”), where are the most economically prosperous regions in China. The Outline is aimed to create one world-class dynamic economic cluster, responding to the “One Nation Two Systems” policy and promoting the construction of “One Belt One Road” development plan. The outline covers the period from now to 2022 in the immediate term and extends to 2035 in the long term2.
The Outline is meant to improve the investment environment of the Bay Area, as specifies many future plans related to investments, for example, the Outline proposes to build a globally competitive modern industrial system, and the importance of high-technology in the development of industry is stressed and future policies are suggested to be published to encourage foreign investors to set up R&D centres and innovation platforms in the Bay Area. Moreover, the Outline promotes film and television cooperation between Guangdong, Hong Kong and Macao, strengthening film investment cooperation and talent exchange. Additionally, the Outline also refers to the marine economy, encouraging industrial (equity) investment funds to invest in marine integrated development enterprises and projects, as Hong Kong is a place where shipping and ship finance sectors are quite prosperous.
The Outline further mentions that Mainland shall further attract the investment from Hong Kong and Macao under CEPA (Closer Economic Partnership Arrangement). Restrictions on Hong Kong or Macao investors shall be further abolished, especially in terms of restrictions on investors’ credentials, shareholding ratio and industry access. The one-stop service for investors from Hong Kong and Macao will also be promoted.
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